Are These Biotech Penny Stocks To 'Buy' Or Are They On The 'Sell' List?
In the last year, many have taken an interest in biotech penny stocks. A significant driving factor of this was that many of these corporations shifted focus to creating a vaccine for the COVID-19 pandemic. This helped some biotech penny stocks reach new heights in the market. These types of stocks tend to be more volatile. With biotech companies, these assets are among the most volatile in the market, in general.
There are a few things that can impact the price of biotech stocks that are important to note. These are things that investors should always have an eye on if investing in penny stocks. Biotechnology companies are constantly participating in industry conferences to provide updates or an outlook.
In addition to this, like many other companies, financial results and corporate updates will come out every so often as well. If large established corporations are only administering the current vaccines, why are investors interested in pharmaceutical penny stocks?
Vaccines are not the most significant driving factor of market momentum. However, these vaccine stocks had shown investors the potential of biotech penny stocks as a whole. These piqued investor interest and have now grown in popularity quite a bit. This has resulted in lots of new names to watch. Some think that the market for biotech penny stocks could continue to grow for years.
A report by Grand View Research stated that the global biotech market is estimated to have a compound annual growth rate of 15.83% in the next 7 or 8 years. As approval processes improve and research and advancements are happening all the time, there are plenty of biotech penny stocks to watch. Here are 4 trending in the stock market today.
Top Biotech Penny Stocks To Watch
- Hepion Pharmaceuticals Inc. (NASDAQ: HEPA)
- Seneca Biopharma Inc. (NASDAQ: SNCA)
- Dare Bioscience Inc. (NASDAQ: DARE)
- Conformis Inc. (NASDAQ: CFMS)
Hepion Pharmaceuticals Inc.
After increasing nearly 31% in the last 5 days, many investors have their eyes on Hepion Pharmaceuticals Inc. Hepion is a biopharmaceutical company that develops pleiotropic drug therapy for treating chronic liver diseases. One of its main products is CRV431, which is a cyclophilin inhibitor.
On February 18th, Hepion announced the closure of a public offering of 44,200,000 shares of common stock. The offering price was $2 a share. This will result in gross proceeds of $88,400,000 before discounts and expenses. The proceeds will be used for research and development, as well as working capital and corporate purposes.
While this sent the stock lower in the short-term at the end of February, March has been a different story. This week, HEPA stock surged thanks to the news on a presentation being made this weekend at the NASH-TAG 2021 Conference.
Hepion's CEO, Dr. Robert Foster, explained, "In this, the first public oral presentation of the top-line data from the low dose cohort in the 'AMBITION' Phase 2a study, we are excited to share both our findings and to highlight the clinical trial risk mitigation potential of AI-POWR(TM) as we plan for the initiation of our Phase 2b study."
Seneca Biopharma Inc.
Another biotech penny stock that has been making the rounds is Seneca Biopharma Inc., a clinical-stage biopharmaceutical company. It researches and develops nervous system therapies based on proprietary human neuronal stem cells and molecules. One of its more recent data pieces was released on January 20th.
The company announced top-line data from phase 2 clinical studies in China. These studies are for the treatment of Ischemic stroke. The study had 23 patients that were assigned to treatment or placebo arms. One of the leading causes of death in China is stokes so this research can be significant. The former President of BaYi Brian Hospital, Ruxiang Xu, said, "Results from this study show NSI-566 may have utility as a treatment for paralysis and motor deficits caused by ischemic stroke. Additional larger studies will be critical in demonstrating the clinical potential of NSI-566 in this unmet need."
However, right now, traders are still focusing on the outcome of its pending merger with Leading BioSciences. The two announced a merger agreement late last year in which the combined companies will develop Leading's GI treatment candidate, LB1148. A name and symbol change will follow; Palisade Bio under ticker PALI.
Dare Bioscience Inc.
This next biotech penny stock to watch has been a big gainer in the market this week. Dare Bioscience Inc. focuses on the development and marketing of products for women's health. The US-based company's pipeline includes therapies for contraception, fertility, sexual, and personal health.
Dare has been participating in a variety of virtual conferences to get its information out to the public. Back in December, the company released positive topline results from DARE-BVFREE. This is a phase 3 trial that the company has been working on for a while.
This month, the company participated at H.C. Wainwright's Global Life Sciences Conference. Chief Executive Officer Sabrina Martucci Johnson participated in a panel discussion titled "Women's Health Companies Blazing the Trail." This is 1 of many upcoming conferences that the company will attend.
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Next week, Dare presents at M Vest and Maxim Group's Inaugural Emerging Growth Conference. Following that, the company will be at the BIO-Europe Spring Digital conference from the 22nd to March 25th. It will be interesting to see how traders respond to what Dare has to say about its current and future plans.
Conformis Inc. is a medical tech company developing, manufacturing, and selling joint replacement implants. These include products such as knee replacements, cruciate-retaining products, and other ligament substitution products.
This healthcare penny stock to watch should be performing poorly as it just reported a fourth-quarter loss and missed revenue estimates. Its revenue decreased 16% year over year, and its gross margin was 47%, a decrease of 180 basis points year over year. This did cause CFMS stock price to fall. But now, CFMS stock is already moving back up.
But as we say, it's essential to see what management has to say when it comes to biotech earnings. "We expect 2021 to be an exciting year in regards to new product offerings, especially our new total knee system. While this system can be used in the in-patient and out-patient settings, we are particularly focused on the ambulatory care setting," said Mark Augusti, President, and Chief Executive Officer. "Our recently completed $85 million capital raise gives us the flexibility to drive our growth strategy."
As you'll see, since the beginning of the week, CFMS stock has reversed course. Heading into next week, shares have broken back above the $1 level for the first time since March 4th.
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